Answer:
The correct answer is: change more quickly than ever before.
Explanation:
Changes appear in the world day by day faster. In the business field, the ability to adapt has become a <em>competitive advantage </em>for firms because the capacity they have to face different scenarios such as the implementation of <em>new technology, political stress </em>or <em>natural disasters</em> has gotten more importance. If companies want to survive these situations, they have to come up with a contingency plan.
Answer:
The projects which maximize Vanguard's shareholder wealth are Project A; Project B; Project D.
Explanation:
Projects which maximize the shareholder value are projects delivering Expected Returns which are higher than its risk-adjusted weighted average cost of capital (WACC).
As a result, Project A with Expected return of 15% and risk adjusted WACC of 12%; Project B with Expected return of 12% and risk adjusted WACC of 10%; Project D with Expected return of 9% and risk adjusted WACC of 8%; are the projects that maximize the shareholder's value.
On the other hand, Project C with Expected return of 11% and risk adjusted WACC of 12% is harmful to shareholder value.
Answer:
Ans. The cost of equity capital is 6.5 (6.5%)
Explanation:
Hi, all we need to do is fill the following equation with the data from the problem.
![r(e)=rf+beta*(MRP)](https://tex.z-dn.net/?f=r%28e%29%3Drf%2Bbeta%2A%28MRP%29)
Where:
rf = Risk free rate (in our case, 2%)
MRP = market risk premium (in our case, 6%)
r(e) = Cost of equity capital
Therefore, this is what we get.
![r(e)=0.02+0.75*0.06=0.065](https://tex.z-dn.net/?f=r%28e%29%3D0.02%2B0.75%2A0.06%3D0.065)
So the cost of equity capital is 6.5% or 6.5 as the problem suggests to answer.
Best of luck.
Answer: option A: More competition for jobs in those areas are witnessed when federal programs provided more electricity in rural areas of the Midwest and South.
Explanation:
In the time of the Great Depression, President Roosevelt has passed the Rural Electrification Act (REA) in 1935 as part of the New Deal execution amendment. Through the beneficial act of supplied quantity of electricity units, the rural areas of the Midwest and South got the fine chance to expand the production of goods and services which covered the expenses of the cost of production.
Agriculture is the primary occupation of those areas, the electricity supply helped them to produce more agricultural products and also it supported Agro-based industries. The installation process are initiated and all farmers got loan advances by the cooperative societies.
Answer:
The inventory TO is 3.6875
Explanation:
![\frac{Sales}{Average Inventory} = $Inventory Turnover](https://tex.z-dn.net/?f=%5Cfrac%7BSales%7D%7BAverage%20Inventory%7D%20%3D%20%24Inventory%20Turnover)
where:
![$$Average Inventory=(Beginning Inventory + Ending Inventory)/2](https://tex.z-dn.net/?f=%24%24Average%20Inventory%3D%28Beginning%20Inventory%20%2B%20Ending%20Inventory%29%2F2)
Considering there is not sufficient information to calculate the begining inventory <u>we are going to work only with the ending inventory </u>so:
![\frac{59,000,000}{16,000,000} = 3.6875](https://tex.z-dn.net/?f=%5Cfrac%7B59%2C000%2C000%7D%7B16%2C000%2C000%7D%20%3D%203.6875)
The inventory TO is 3.6875 This means the company sales their inventory almost 4 times per year.